Navigating the First 100 Days: A Recap of Recent Tariff Actions

As President Trump marks his first 100 days in office, both domestic and global markets are grappling with the sweeping changes brought by his administration’s tariff policies. From newly imposed duties to sudden pauses and retaliatory measures by trade partners, the landscape is shifting rapidly, raising questions and concerns for businesses across the U.S. and abroad.

At its core, a tariff is a tax levied on imported goods, typically paid by the importing company to the government receiving the goods. Proponents of tariffs argue that they can benefit domestic industries by making imported goods more expensive, which encourages consumers to buy locally. This can lead to job growth and economic stimulus in specific sectors. Additionally, tariffs can generate revenue for the government, which can be used to reduce debt or fund other programs. Some also argue that tariffs can protect national security by ensuring domestic production of key goods, such as in the event of a global crisis.

Those against tariffs would argue that while tariffs aim to protect domestic industries, the unpredictable nature of these changes can spark widespread economic concern. This includes heightened fears of inflation, supply chain disruptions, and even recessionary trends. Currently, the U.S. Consumer Confidence Index has fallen to a 12-year low, potentially highlighting nationwide apprehension due to tariffs despite a stronger than expected jobs report for April and unemployment holding steady.

Key Milestones in the Tariff Timeline

Here’s a high-level overview of the major developments:

• Feb 1: Executive order imposes 10% tariffs on Chinese imports, 25% on goods from Mexico and Canada. Retaliation from China and Canada follows.
• Feb 3–5: Temporary pauses and reinstatements occur, particularly around de minimis exemptions and Canadian/Mexican tariffs.
• Feb 10 – Mar 13: Escalations intensify with broader tariffs on steel, aluminum, and energy, along with significant retaliatory measures from China, Canada, and the EU.
• Mar 25 – Apr 13: Widespread global retaliation, including new tariffs on autos and luxury goods. Talks of additional hikes and pauses keep markets on edge.
• Apr 29 – May 5: Certain exemptions introduced, but potential new 100% tariffs on foreign films signal continued trade tension.

Where Do We Stand Now?

The continued volatility has left many wondering what’s next. Even within Washington, there is much uncertainty. Last Wednesday, the Senate voted to challenge the administration’s tariff actions but that effort ended in a 49-49 tie, effectively defeated by Vice President Vance’s tie-breaking vote.

Businesses across many industries are now entering a “wait and see” phase. Forecasts are trending downward, with organizations preparing for price hikes and possible shortages or delays, particularly for goods from Southeast Asia. Expansion plans are being postponed, hiring strategies re-evaluated, and in some cases, layoffs are even being considered as a means of cost control.

Preparing for What’s Ahead

With market conditions evolving rapidly, proactive planning is more critical than ever. Whether your business is evaluating supply chain strategies, pricing models, or workforce planning, now is the time to review your options.

Connect with your BMSS advisor today to explore tailored strategies that can help your organization prepare for potential impacts and strengthen resilience in the face of uncertainty. Call our office at (833) CPA-BMSS or visit our website at www.bmss.com to connect with your BMSS professional.